Four Types of Customers and How To Sell to Them

It’s not possible to sell to everyone. There are some customers you should avoid because they will always be the cause of your nightmares.

The customers you want to focus on are the ones who make you the most money.

How do you find them?

Knowing the type of prospect you are dealing with will determine how likely this prospect will become a customer.

There are basically four kinds of customers, or clients.

Watch this video about the four types of customers.

1. Price-Based Customers

Price-based customers and clients buy based on how much something costs.

They get on the phone and ask questions like, “How much does it cost? How much do you charge?”

They don’t bother to find out what you do or what value you provide. They‘re just shopping around.

They’re the type of client where you say, “I charge a hundred” and they say, “Oh, I thought somebody told me you charge $40 or something.”

They like to ask you what is your best price. You’ll give them a price and they’ll say, “I could get someone on Fiverr to do it for $5.”

Price-based clients are more demanding about terms or quality of service. They don’t truly appreciate what you offer.

You try to do a good job because you think you can win them over as clients by charging less the first time. Then when they see how good you are, you can charge your usual rate the next time. But with these clients, that’s not likely to happen.

That’s not going to happen because it’s in their nature to be focused on price. They are the type to watch shows about how fascinating it is to clip coupons and save every single dollar they can. Nothing wrong with that, but I’m not selling to them.

Price-based Clients

What they are like

Buy based on price

Want quality but don’t like to pay a high price for it

How to sell to them

Don’t sell to them even though they make up the majority of the marketplace.

2. Difficult Customers

Difficult customers aren’t necessarily the type to argue about prices. They’re just difficult. If you show you’re having a bad day, they’ll try to make your day worse. They’re just difficult to deal with.

They’re not that pleasant. They don’t smile that much. They’ve got this negative energy about them. They say things like, “My life is horrible. The world is going downhill.”

They’ll ask you a lot of illogical questions just to give you a hard time.

In terms of the marketplace, the majority of the people are price-based customers. There are also difficult customers. Most entrepreneurs subconsciously structure their marketing message in a way to attract these people. They don’t even know it.

When entrepreneurs, business owners, and salespeople tell these customers that they can offer a deal, or give them a better price, two for the price of one, they are speaking their language. These customers want to save money. They want to pay you less.

Difficult Clients

What they are like

Give you a hard time

How to sell to them

Don’t sell to them

3. Sophisticated Customers

Sophisticated customers have money and they’re educated. They know what they’re buying. Sophisticated customers go into your business and know exactly what they want because they’ve done their research. They have talked to a few people about what you do.

It could be that you’ve been the source of that education. They’ve visited your website, watched your videos, or spoken to someone on your staff.

Let’s say this customer is buying a car. They would say, “Okay, I know exactly the model I want. Here’s exactly all the features that I want. The color I want. Here’s the payment plan.”

They’ve been to your website or read your product guides so they’ve already made some decisions before meeting with you. They’re very, very sophisticated. Now with these customers, sometimes you can educate them and they appreciate that. They like that because the additional information shows them you know what you’re talking about. It builds trust.

Sometimes sophisticated customers need time. They’ll ask a lot of intelligent questions about how much warranty they get. They’ll ask about features and benefits. Then they’ll get back to you before you get back to them.

They’ll say, “Great information. I just need to do a little more research.” This is very different than customers that say, “Well, I’ll think about it.” And they never get back to you. Sophisticated customers actually need some time to think it over and talk with some people, because usually when they make a decision they stick with that decision.

If they’re going to buy, they want to know about terms and conditions. They want all the details. They’ll read the fine print when they sign.

Sophisticated Clients

What they are like

Educated about your products and services before they speak to you

Mean it when they need time to think about it

How to sell to them

Win their respect and trust by educating them about your products and services

Be prepared to tell them about features, benefits, terms and conditions

4. Affluent Customers

Affluent customers buy based on feelings. They aren’t concerned about the cost or even about the details. They just want to feel good after they buy your product or service.

An example is when I went to the car dealership to buy the RX-8. I actually did not know all the features, the horsepower, or any of those details. I just thought it’s a cool car. That was my buying criteria. It was a cool car. I could afford it. I was getting it.

The mistake entrepreneurs make when they try to sell to affluent clients is they say to them, “I’m going to give you a deal.” These customers don’t want a deal. They’re thinking if you give them a deal, then the item is cheap. They wonder if there is something wrong with it.

So when you sell to affluent customers or clients, focus on how they will feel after buying your product. Don’t be afraid to name your price. Price is not an issue for them.

Affluent Clients

What they are like

Buy based on emotions

Are not concerned about price

How to sell to them

Don’t focus on features and benefits or other details. Focus on feelings.

Don’t be afraid to name your price. Never say you’ll give them a deal.

A person can be more than one type of customer or client. If I’m making an investment, I’m a sophisticated customer. If I want to buy an expensive suit to make me feel good, I’m an affluent customer. And if I’m just getting several rolls of toilet paper, then I might be a price-based customer.